QUEST ACQUIRES LABONE FOR $934 MILLION
Medical test provider Quest Diagnostics has agreed to acquire LabOne, a Lenexa, Kan.-based provider of health screening and risk assessment services to life insurance companies.
Under the agreement, which was unanimously approved by both companies' Boards of Directors, Quest Diagnostics will acquire all outstanding common shares of LabOne for $43.90 per share in a cash transaction valued at $934 million, after the assumed settlement of LabOne's convertible debt for $132 million.
The transaction, which is expected to be completed during the fourth quarter of 2005, is subject to the satisfaction of customary conditions, including LabOne shareholders' approval and regulatory clearance. Quest expects to finance the transaction through a combination of cash on hand, available credit facilities and public debt.